Operations Management Operations management refers to the administration of business practices to create the highest level of efficiency possible

within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. In other words, operations management is a process of designing the method of conversion of inputs (materials, labor, proprietary information, etc.) into outputs (goods, services, value-added products, etc.) that is most beneficial to the organization. Operations management teams attempt to balance costs with revenue to achieve the highest net operating profit possible. Objective of Operation Management Operations management focuses on carefully managing the processes to produce and distribute products and services. Major, overall activities often include product creation, development, production and distribution. (These activities are also associated with Product and Service Management.) Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations of processes. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of the products or services in the organization, for example, on retail, manufacturing or wholesale. Running a business by the numbers. How to acquire equipment, furnishings, telephone systems, tools (software,pcs, etc.), and office space at the lowest pos sible costs. How to control energy and maintenance costs because as energy costs regularly account for 30-50% of operational expenses. Too many budgets fail to take into account the impact of poorly maintained machines, equipment failure and unexpected problems. Vendor and contract management How to keep your focus on your core products. How to minimize employee theft.

Operation Functions